We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover.
The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.
Checkmark Expert verified
Bankrate logoHow is this page expert verified?
At Bankrate, we take the accuracy of our content seriously.
“Expert verified” means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced.
Their reviews hold us accountable for publishing high-quality and trustworthy content.
Written by
AJ Dellinger
Edited by
Laurie Richards
Reviewed by
Thomas Brock
Thomas is a well-rounded financial professional, with over 20 years of experience in investments, corporate finance, and accounting. His investment experience includes oversight of a $4 billion portfolio for an insurance group. Varied finance and accounting work includes the preparation of financial statements and budgets, the development of multiyear financial forecasts, credit analyses, and the evaluation of capital budgeting proposals. In a consulting capacity, he has assisted individuals and businesses of all sizes with accounting, financial planning and investing matters; lent his financial expertise to a few well-known websites; and tutored students via a few virtual forums.
Bankrate logoAt Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity , this post may contain references to products from our partners. Here's an explanation for how we make money .
Bankrate logoFounded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.
Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts, who ensure everything we publish is objective, accurate and trustworthy.
Our mortgage reporters and editors focus on the points consumers care about most — the latest rates, the best lenders, navigating the homebuying process, refinancing your mortgage and more — so you can feel confident when you make decisions as a homebuyer and a homeowner.
Bankrate logoBankrate follows a strict editorial policy, so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information.
Bankrate logoYou have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.
Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.
We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.
Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range, can also impact how and where products appear on this site. While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service.
If you’re concerned about your ability to make your next mortgage payment, you might be able to work with your lender on a forbearance agreement. Doing so can help you avoid late penalties, going into default and foreclosure. To get a standard mortgage forbearance agreement, you must present documentation proving your financial hardship.
A mortgage forbearance agreement is an arrangement between you and your lender to provide temporary relief from paying your mortgage, either by lowering or pausing the payments.
Entering into a forbearance agreement doesn’t mean you’re off the hook for the missed or reduced payments — you’ll still owe the amount you missed later, usually when the forbearance period ends. You can negotiate the details of your forbearance agreement with your lender, but typically, the initial forbearance period lasts between three to six months. The end date will be documented in your forbearance agreement, meaning you’ll start making full payments again at that time.
A forbearance agreement can act as a support system for borrowers who need time to get their finances in order after a temporary hardship, like a job loss. It will not, however, keep you out of foreclosure if you can’t make the agreed-upon payments after your forbearance period ends.
In a standard mortgage forbearance agreement, the lender typically agrees not to foreclose on the property when you’ve fallen behind on payments. Instead, you and your lender will negotiate an agreement allowing you to make payments under a revised mortgage plan designed to eventually bring you current on loan payments.
This temporary forbearance agreement may include reduced mortgage payments or suspended payments for a set time. Generally, to qualify for this type of agreement, you must be able to demonstrate and submit proof of financial hardship. At the end of the forbearance period that’s been negotiated, you must resume full mortgage payments.
A mortgage forbearance agreement is the deal you make with your lender to lower or suspend your mortgage payments temporarily, as well as the timeline and plan for when you’ll resume payments. But before entering into this agreement, you’ll need to ask your lender to put your loan into forbearance. If approved, you and your lender can initiate the mortgage forbearance process, which includes creating the forbearance agreement.
Mortgage forbearance agreement vs. defermentMortgage forbearance allows borrowers to stop making monthly payments temporarily. Mortgage deferment is one way to repay the paused payments without interest accruing. With a deferment, your lender adds the owed amount to the end of your loan term, so you won’t have to make extra payments when your regular payments resume (like you would in a standard forbearance agreement).
Forbearance agreements differ between mortgage lenders since they’re based on factors such as the investor requirements of your loan and the type of mortgage you have.
Whoever your lender is, your agreement will outline the terms of the forbearance period, such as:
Continue to pay your mortgage until you receive a written notice that the forbearance agreement is in effect. If you don’t, your lender could report those missed payments to the credit bureaus, which could lower your credit score. Make sure to also check your credit report regularly to ensure your lender doesn’t mistakenly report catch-up payments as late ones. Dispute any errors as soon as you can.
To request a mortgage forbearance agreement, contact your lender or whoever services your mortgage payments. You will likely need to provide documentation (like a lay-off notice) proving that you’re experiencing financial difficulties, a recent mortgage statement, an estimate of your monthly expenses and your current income.
Depending on your lender, you’ll have different forbearance repayment options after the forbearance period ends. There are a few ways to repay what you owe. You can pay it all in one lump sum, tack on the catch-up payments to your existing monthly payment or defer what you owe to the end of the loan term. You can also refinance your loan. In some cases, you can use a loan modification, which changes the terms of your existing mortgage, such as the interest rate.
Arrow Right Contributor, Personal Finance
